Market Conditions – We wanted to provide a mid-month market update as last week ocean carriers have announced their post CNY blank sailing schedules that includes over 32 port skips in a course of four weeks! The abundance of blank sailings could be viewed as a early indicator ocean carriers will pay keen attention this year on managing supply/demand to avoid any significant rate drop during the slack shipping season. Furthermore, long term contract negotiations will get underway shortly and ocean carriers would lose leverage if the short-term market rates tumble. Below are additional details of the blank sailings by alliance and independent carriers for reference and if you have any additional questions please reach out to your Laufer sales and service representatives for additional information.

For the short-term East Coast capacity continues to tighten and with the majority of ocean carriers forecasting over 100% utilization on services to the East Coast and Gulf into early February. Due to the tight capacity ocean carriers have implemented two rate increases in the short-term market on 1/1/18 & 1/15 with two additional increases on the calendar for 1/22 & 2/1. West Coast capacity has been less of a concern thru early January and reason market rates have been fairly stable with minimal increases to both West Coast port and USIPI destinations. Ocean carriers will attempt to increase the market rate to these locations on 1/22 and with high demand in general might have some success. Stay tuned..

In the domestic market high demand for trucks has continued into the New Year. Demand is far outpacing supply pushing up rates in both the over the road and drayage markets. The new requirement for ELDs and severe winter weather conditions in both the Midwest and East Coast are also putting pressure on the already tight capacity. We expect demand to remain strong for the foreseeable future as overall market volumes remain strong.

Blank Sailings – A total of 32 blank sailings have been announced to the market starting in week 6 thru week 10.

- The Alliance has a total of 10 blank sailings (6 WC & 4 EC services)

Our #1 priority as always is to help maintain our customers’ competitiveness, to keep your cargo flowing as quickly and as consistently as possible, and to continue to communicate effectively along the way. Our nimbleness, market awareness, and “Built Different” philosophy enable us to do this - as your partner.